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Which one when it first started? I do not think that I remember. But since it was one bank after another and then another and so on. With different names and labels, they come promising huge sums of cash awards and household items as gifts, travel / tours etc

By now you should know what I mean – many shares in savings, which the banks in Nigeria have now adopted as a strategy for obtaining some of the deposits to distribute millions of naira to save a few thousand naira. Before I go on I would like to make clear that this part is the personal analysis of these numerous and promotions, an effect that they may have on the banking sector.

Savings accounts, which are traditionally, deposit accounts, which are used to put money. Submission words to keep it to stay away. Hence, the reason for the savings account earns interest as an incentive for a man who makes his money on another kind of application. In essence, this is the purpose of a savings account and the banking system as a whole, to take money from those who are overweight and to those in his brief. Bank or intermediary institutions, therefore, must hold the money long enough to ensure their beneficial use and the depositor should let him go on long enough to allow the Bank to effectively use it.

Although this still holds for the banking system, this can not be said about the savings system with the influx of these shares. Many analysts have always advocated that banks should focus more on the Fund, the term for their lending business, and therefore must rely on deposits rather than their own funds for their business. Are these really serve the purpose of Equities banks hope to achieve with them? I doubt it. Why am I with this position?

- First, savings accounts in Nigeria, more or less became the removal of accounts where depositors deposit today and tomorrow to go. With this kind of relationship, investors move cash at will with a promo for a promo after the period for preserving the contributions to be eligible for draws invalid.

- Again caliber people (merchants, students, etc.) attract these shares, although it is good for banking, only to save the system even more prone to exhaustion, as these sets of people do not earn enough to keep in the bank for years, so after moving from a promo for a promo (as they only need to keep deposits for one month or two), they finally withdraw their money for personal use.

- From personal observations, people are only interested in preserving the long ongoing promo. Those who are mostly members of the Shares are opportunists trying to get a quick and have no interest in their bank cash. Another time was lamenting to me how he regretted investing in stocks and could not get out because his stock certificate was not added yet because he wanted to take part in promotional savings, which has been promising a trip outside the country.

I think instead of those savings bank’s shares should start focusing on products that will actually generate such fields as their Special Account savings that encourage the preservation of doing more, because investors earn more interest if necessary to keep a reasonable minimum balance at any time. This ensures that money to banks to work with a longer period.

Banks should also establish a reputation for reliability, durability, sustainability and quality of services, rather than trying to woo depositors’ share, which can not last forever. The bank may be able to generate fields in the promo, but it will gradually fall as investors move their money in banks are perceived as more trustworthy and reliable.

Another reason, banks often had to pick up on such shares is “to encourage loyal customers. Well, I think, those who ultimately win are not real loyal customers. Loyalty is a measure of sustained commitment, which can be easily determined by a simple book to find out who remained in the bank over and rewarding them collectively or by random selection without make huge budgets for the promotion of the lottery system called the customer rewards.
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From this point, was to increase the number of U.S. financial institutions seeking government assistance. The government tried to support some of the absence of institutions with hundreds of billions of dollars in taxpayers’ money, however, as economic instability, swelling, liquidity in the credit market has not improved. As a result of the nationalization of some banks has become a disputed topic.

At first glance, looks like the nationalization of a viable and attractive solution. Good assets are returned to the private sector and toxic debts are divided, contained and addressed. So what is down? Why would the government act quickly to nationalize the banks and remove this anchor on the U.S. economy? First, the nationalization of banks would eliminate the shareholders. Second, banks may be changed in the interest of politicians. Finally, the nationalization of the bank can reduce the value of the U.S. dollar.

Complete nationalization of banks such as Citigroup and Bank of Bank of America will destroy shareholders. Although the president, Obama said that his administration is not interested in controlling Bailed out banks, it could be argued that when the government becomes the majority shareholder, it is under control, and the bank is essentially a public company. In the case of bank Citigroup, for example, the third phase is scheduled to leave the U.S. government rescue of holding 40% shares of Citigroup’s. If the U.S. government would nationalize the bank, the bank Citigroup preferred stock owned by the government will convert into ordinary shares and, consequently, the current shareholders will be destroyed. This is one reason the current pressure on bank stocks. As the world watched on February 20, 2009, fear that the government will fully nationalize banks has caused shares of Citigroup Bank and Bank of America fall.

Government control over these two giant banks could ultimately benefit the politicians. History proves that when the federal government-owned commercial banks, he abused his power. Although only 20% of the Second Bank of the United States, was owned by the government, the bank effectively controlled by the President and Congress. It was riddled with fraud and corruption, and ultimately went bankrupt. The most recent example is the house bank. In addition, we must not forget that these financial institutions have been large, but less complicated and only works with millions of dollars in assets. Today banks are interconnected throughout the system, and they control trillions of dollars in assets worldwide.

Even if the Obama administration is against the direct control of banks, the government will still own 40% of the shares of Citigroup’s. As a result, the government’s largest shareholder, and some may argue, resulting in the bank, which will be driven by political goals, to some extent. There are already political rules and restrictions that are putting pressure on financial institutions, but with public property, this policy could dramatically intensify.

Nationalization of banks may also have a negative impact on the U.S. dollar. If the exchange rate of the dollar falls against other currencies, the U.S. could experience an increase in its debts and liabilities. Thus, American taxpayers will stand to lose the most. Such negative effects of nationalization have already seen in other countries. For example, in February 2008 the British government nationalized the bank Northern Rock. As a result, the British pound fell from 1.9638 to a minimum of 1.9363 within 3 days of trading.

There is much disagreement about the Citigroup Bank and Bank of America should be nationalized. Those who oppose the issue believe that the nationalization of the bank will erase the current shareholders could benefit from U.S. politicians, not the taxpayers and may increase the debt of the Federal Reserve and obligations in relation to the possible fall of the dollar. In addition, nationalization would almost certainly mean more rules, which would reduce the incentives and may weaken the economy further. While some may find short-term benefits of the nationalization of banks in the U.S., we must not forget that everyone goes to the benefit of greater value long term. In this case, taxpayers will pay a high price.
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